The disagreement value in a nonstrategic game is most closely related to
A)opportunity costs
B)fixed costs
C)total profit
D)accounting costs

Question

Quizplus · Accepted Answer

The disagreement value represents the amount that each player would receive if they both chose to end the game without reaching an agreement. It is the minimum value that each player would accept to continue playing. This value is related to the opportunity cost of each player because it represents the value that they place on the next best alternative to playing the game. Therefore, the correct answer is A) opportunity costs. The other options (B, C, and D) are not related to the disagreement value in a nonstrategic game.

The Disagreement Value in a Nonstrategic Game Is Most Closely